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As part of its reforms, Mr Shorten outlined that Labor would introduce a minimum 30 per cent tax rate for discretionary trust distributions to adults. The report released by RMIT University this week, which was commissioned by the ATO, stated that over the past six years the Tax Avoidance Taskforce had raised more than $1.2 billion in liabilities and collected more than $467 million in relation to trusts.
Participants in the report suggested that reform in relation to trusts could include a withholding tax regime similar to that in place for salary and wage earners, or taxing the trust or trustee as an entity and maintaining the current flow through features of trusts.
Mr Bowen stated that Labour’s reforms is seeking to apply a minimum standard tax rate of 30 per cent to discretionary trust distributions to beneficiaries over 18 years of age”.